KALSHI Policy
CFTC
U.S. regulator overseeing Kalshi as a Designated Contract Market (DCM) and enforcing trading rules.
Detailed explanation
The CFTC, or Commodity Futures Trading Commission, is the U.S. federal regulator for Kalshi’s Designated Contract Market operations. It ensures that Kalshi operates under defined rules, maintains market integrity, and settles contracts in USD. Traders should understand that Kalshi’s compliance framework—KYC, AML, reporting, and user protections—derives from CFTC oversight rather than voluntary industry standards.
Kalshi’s status as a CFTC-regulated venue means that market resolutions follow written rules, sources, and procedures approved by the regulator. This framework supports transparent pricing, standardized contract terms, and formal dispute handling, which differentiates Kalshi from unregulated platforms. Compliance requirements apply to all users who trade on Kalshi in the United States and through eligible states.
Worked example
Example: A market shows YES at 42¢ and NO at 56¢. The total bid prices sum to 98¢, creating a 2¢ edge if you buy both sides (YES 0.42, NO 0.56, payout $1 on true outcome).
FAQ
- What does CFTC stand for?
- Commodity Futures Trading Commission, the U.S. regulator for Kalshi’s binary markets.
- What does CFTC regulation mean for Kalshi traders?
- It ensures Kalshi operates under formal rules, with USD settlement and user protections like KYC and AML.
- Is CFTC regulation the same as Kalshi’s internal rules?
- CFTC oversight governs compliance; Kalshi also publishes its own market-resolution rules and sources used for settlement.
See CFTC on a live Kalshi market
KalshiArb scans every open Kalshi market for arbitrage edges where YES + NO < $1.00. Plug in your Kalshi API key and start receiving alerts in under 5 minutes.
Related terms
- KALSHI FeeTrading fee charged on each order, applied per contract and per fill.
- Designated Contract MarketKalshi’s CFTC-regulated venue for trading binary event contracts (YES/NO) with USD settlements.
- Geo RestrictionsKalshi eligibility rules by state and residency determine who can trade; check Kalshi’s published list for current limits.
- KYCKnow Your Customer; Kalshi requires identity verification (name, SSN, address) before trading.